The Government Accountabilty Office released a report Thursday endorsing the U.S. Postal Service's idea to withdraw its retirees and current employees from the Federal Employee Health Benefit Program and start its own health plan.
The GAO said the Post Office would save a great deal of money in doing this and eliminate its unfunded retiree health benefit liability.
An alternative option is to reduce the Post Service’s annual retirement system contribution either by amortizing the surplus over 30 years, or by offsetting the contribution against the full surplus each year until the surplus is used up.
Postmaster General Patrick Donahoe said Thursday the Postal Service had no choice but to ask for an emergency rate hike given the agency's dire finances.